Types of Legacy Gifts

While the church cannot offer financial or tax advice regarding your gift, members of the Legacy Giving Committee will be happy to answer your questions about different gift types. We encourage you to work with your attorney and/or financial advisor to select the approach that is right for you.

There are currently four basic options available to you through this program:

(There are additional options you may wish to consider under certain circumstances, including pooled income funds, charitable remainder trusts, and charitable lead trusts, that will not be discussed further here. Pooled income funds are more attractive in a higher interest rate environment. Charitable remainder trusts and charitable lead trusts are more complex and individualized vehicles better discussed with your professional advisors.)

Bequests

A bequest is a provision in your will or revocable trust designating a fixed dollar amount, a percentage of your assets, or the remainder of your estate will be given to First Parish in Concord, upon settlement of your estate. Most bequests are fully revocable while you are alive.

Language for Wills

You may add a simple codicil to your will to create a bequest for First Parish. You can make a specific bequest by identifying a block of stock or bonds, a specific parcel of real estate, or other clearly identified marketable asset. Or, you can make a cash bequest in a specific amount or as a percentage of your estate. You can also make a residual bequest from the remaining assets in your estate after all other specific bequests and settlement costs are satisfied.

Most bequests are undesignated which makes them available for general use as part of the Legacy Investment Fund. This fund exists in perpetuity and generates annual income for First Parish. If you wish to designate a bequest for a particular program or other purpose at First Parish, please first talk with a member of the Legacy Giving Committee to ensure your bequest can be accepted.

The following sample language can be used to fulfill your charitable objectives:

Specific Amount: I give, devise, and bequeath $ ______________ to First Parish in Concord.

Percentage Bequest: I give, devise, and bequeath __________ % of my gross estate to First Parish in Concord.

Residuary Bequest: I give, devise and bequeath the rest, residue, and remainder of my estate to First Parish in Concord.

Language for Trusts

You may amend your revocable trust to create a bequest for First Parish in Concord. This can be done at any time or as part of a review and updating of your trust, which is recommended every 5-10 years as the relevant laws change. You can make a specific bequest by identifying a block of stock or bonds, a specific parcel of real estate, or other clearly identified item. Or, you can make a cash bequest in a specific amount or as a percentage of your estate. You can also make a residual bequest from the remaining assets in your estate after all other specific bequests and settlement costs are satisfied.

Most bequests are undesignated which makes them available for general use as part of the Legacy Investment Fund. This fund exists in perpetuity and generates annual income for First Parish. If you wish to designate a bequest for a particular program or other purpose at First Parish, please first talk with a member of the Legacy Giving Committee to ensure your bequest can be accepted.

The following sample language can be used to fulfill your charitable objectives:

Specific Amount: The Trustee shall distribute $ ______________ to First Parish in Concord.

Residuary Bequest: The Trustee shall distribute the rest, residue, and remainder of my estate to First Parish in Concord.

Retirement Plan Beneficiary Designations

You can designate First Parish as a beneficiary of your IRA, 401(k), or 403(b) plan, for a specific amount or a percentage of total assets. Such gifts can save on income and estate taxes.

Leaving a portion of your retirement plan account to First Parish in Concord can help you get the most value from your estate and protect your heirs from taxes. These retirement assets are subject to income taxes when paid out to a taxable entity (i.e., most people, even your spouse or children), even when the estate is too small to owe estate taxes. These taxes can reduce the amount received by your heirs by up to 35 percent. In contrast, nonprofit organizations such as First Parish are eligible to receive the full amount at your death without facing any income tax liability. Income taxes can be avoided or reduced through a carefully planned charitable gift. There are three common approaches:

Designate First Parish in Concord as a primary beneficiary for a percentage (1 to 100 percent) of your retirement plan account.

Designate a specific amount to be paid to First Parish in Concord before the remainder is directed to family or other individuals.

Make First Parish in Concord the contingent beneficiary to receive the balance only if a loved one, as primary beneficiary, doesn’t survive you.

To implement your wishes, please contact your plan administrator, then complete and sign whatever forms are required. This can often be done on-line. You may wish to contact your attorney to be sure you are using the correct language.

Life Insurance Beneficiary Designations

You can designate First Parish in Concord as a beneficiary of all or a portion of your life insurance benefits. A traditional life insurance policy (with an accumulated cash value) can be a valuable asset. If the original purpose for the protection no longer applies—such as to educate children now grown or to provide financial security for a spouse now deceased—a life insurance policy can be redirected to help support a worthwhile cause such as First Parish in Concord.

To implement your wishes, please contact your life insurance agent or company and obtain and complete the needed change of beneficiary form. You may wish to contact your attorney to be sure you are using the correct language.

Charitable Gift Annuities

First Parish’s Charitable Gift Annuity program is professionally managed and administered by the Office of Legacy Gifts at the Unitarian Universalist Association and State Street Global Advisors. Fifi Ball, Director of Operations at First Parish, is happy to work with you and the UUA to establish a charitable gift annuity.

A charitable gift annuity is a good arrangement for someone looking to augment their retirement income because it generates a fixed dollar income for the rest of your life. In exchange for your irrevocable gift of at least $10,000 in cash or publically traded securities, the UUA will pay you a lifetime income based on your age (minimum 65) at the time of your gift. At the end of your life, money remaining in the annuity (the ultimate gift) is distributed to First Parish (and/or the UUA) as you specify. The gift annuity can be for one or two people, so a spouse or other loved one can also receive payments for life.

A portion of the initial gift is income tax–deductible based on IRS rules about the expected value of the ultimate gift. Charitable gift annuity payments are partially income tax–free throughout your estimated life expectancy. If you use appreciated stock to make a gift, you can usually eliminate capital gains tax on a portion of the gift and spread the rest of the gain over your life expectancy.

If you are interested in making a charitable gift annuity, please contact Fifi Ball, email: fball@firstparish.org. She will work with the UUA on your behalf.

The first step is to determine (a) the approximate size of the gift you are considering; (b) whether you want a single-life or joint-life annuity; (c) the birthdates of each annuitant; (d) the type of asset (cash or marketable securities); and (e) if securities, the cost basis of them.

Provide Fifi Ball with the information in number 1 above. Fifi will convey that information to the UUA and they will run a simulation illustrating the financial benefits of your gift annuity, including quarterly payments to you, your one-time charitable deduction, and the tax breakdown. If you prefer to work directly with the UUA you may contact Laura Randall at 617-948-6511, giftplans@uua.org.

After you receive the illustration you should discuss the details with your financial and tax advisors. You can then decide whether you want to proceed and if so, the amount you will allocate to your annuity.

If you do decide to proceed, then you will work with Fifi and the UUA to complete the necessary form and have all documents prepared and funds transferred. Checks are payable to the Unitarian Universalist Association.